Summary
AutoZone Inc. (AZO) reported its financial results for the twelve weeks ended November 18, 2017. The company demonstrated solid top-line growth, with net sales increasing by 4.9% to $2.59 billion, driven by a 2.3% increase in same-store sales and contributions from new domestic stores. This growth translated into a healthy earnings per share (EPS) increase of 6.8% to $10.00. The company also highlighted strong operating profit and managed its expenses effectively, despite some hurricane-related costs. Liquidity remains strong, supported by robust operating cash flows of $565 million for the quarter. AutoZone continued its strategic capital allocation by investing in new store development and distribution centers, with capital expenditures of $110.3 million. Furthermore, the company actively returned capital to shareholders through share repurchases, spending $352.6 million on buybacks during the quarter. The company also extended and expanded its revolving credit facility, increasing borrowing capacity to $2.0 billion, underscoring its financial flexibility.
Financial Highlights
46 data points| Revenue | $2.59B |
| Cost of Revenue | $1.22B |
| Gross Profit | $1.37B |
| SG&A Expenses | $897.09M |
| Operating Income | $468.75M |
| Net Income | $281.00M |
| EPS (Basic) | $10.17 |
| EPS (Diluted) | $10.00 |
| Shares Outstanding (Basic) | 27.64M |
| Shares Outstanding (Diluted) | 28.10M |
Key Highlights
- 1Net sales increased by 4.9% to $2.59 billion for the twelve weeks ended November 18, 2017.
- 2Same-store sales in domestic AutoZone stores increased by 2.3%.
- 3Diluted earnings per share (EPS) grew by 6.8% to $10.00.
- 4Operating cash flow provided a strong $565 million.
- 5The company repurchased $352.6 million of its common stock during the quarter.
- 6Revolving credit facility capacity was increased to $2.0 billion with an extended termination date.
- 7The average age of vehicles on the road continues to trend favorably for the company's industry.